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Add You - Startups Must Choose Financing Models Wisely: Bootstrapping versus Angels versus VCs
Correctly Pricing A Business Is Important If You Really Want To Sell It!As a consultant I talk to many business owners, brokers, and agents on a daily basis about valuing businesses. It always amazes me on how some of these individuals come up with the values on small businesses being sold. No wonder only 30% of all businesses sell! In many instances no consideration is given to the total picture – like will the available cash flow of the business be able to pay the debt of a loan, will the deal as structured or priced even be attractive to financing sources, "cash" price vs. "note" price and how these factors figure into the equation!I have seen many "professional valuations" where the price just doesn't make sense – and sellers wonder why their business for sale just sits there with no action!Market ApproachThere is a solution that is grounded in the fundamentals of economics, and time tested in the ma
Every Startup should end a series of successful prototyping with
I vaguely remember a particular story from my childhood. It had something to do with transporting eggs to market. The main character, a little girl who thought she knew more than she really did, put all of the day’s eggs into one basket, and when she tripped and fell on the way into town to sell the eggs, all of the eggs broke. It seems that her grandmother (the voice of experience and wisdom) tried to tell her not to do that, but she wouldn’t listen. If she had divided them up into several means of transportation some would have been lost, but not all of them. It was a difficult lesson to learn.Everyone is familiar with this concept by the time we reach adulthood. It is most often brought up in the field of financial investing. You know, don’t invest all of your nest egg in Acme Widgets, because who knows how long there will be a market for widgets. And then where will you be? Or maybe you are told not to invest al
However, it must be noted that the type of financing Startups receive determines the company’s strategic direction and probability of success.
Finance Models have numerous tangible strategic implications. When early stage Startups choose a Finance Model, they are confining themselves to a limited range of strategic options. When choosing a Finance Model, I think it is best to momentarily forget about money and focus sensibly on strategy.
To make the best possible decisions regarding your financing and de facto strategic direction, Startups have to place themselves in the best possible situation from day one.
Every Startup should end a series of successful prototyping with
Turning your passion into a paycheck is the ultimate dream right? Who would not like to spend most of their time doing something they absolutely love and get paid for it?Even just reading about people who are following their passion, as I just did in a great article I read in Outside Magazine this weekend, gets me fired up.There are so many possibilities out there for work and one of the greatest things I do all day is help people to open up their minds to all of the possibilities out there for them. So often people are trapped by old ways of thinking and by the expectations of other people and society that they fail to see how great they could really have it.So, the next time you wake up on a Monday morning dreading the week ahead, start thinking about how you would really like your career to be and what you are willing to do to achieve it. How do you want to feel when you think about going to work and what ar
However, it must be noted that the type of financing Startups receive determines the company’s strategic direction and probability of success.
Finance Models have numerous tangible strategic implications. When early stage Startups choose a Finance Model, they are confining themselves to a limited range of strategic options. When choosing a Finance Model, I think it is best to momentarily forget about money and focus sensibly on strategy.
To make the best possible decisions regarding your financing and de facto strategic direction, Startups have to place themselves in the best possible situation from day one.
Every Startup should end a series of successful prototyping with
Security is so important that it has to be addressed from the very first day you start planning your new franchise business. Over the years the franchise industry has developed security safeguards and operations that are highly effective and most franchisors now have as a matter of course well developed, tried and tested security procedures. There is now a very active Security Industry, which has grown up around this need for protection, and ranges from local, to large national and multi-national companies.The most common security issue you will face every day can be the most soul destroying of all, and that is; Internal Theft by Your Employees. Your franchise employees are 15 times more likely to steal from you than are your customers, so you need to thoroughly investigate the background of prospective employees for you franchise business. Check personal and credit references and most of all check with former emplo
Finance Models have numerous tangible strategic implications. When early stage Startups choose a Finance Model, they are confining themselves to a limited range of strategic options. When choosing a Finance Model, I think it is best to momentarily forget about money and focus sensibly on strategy.
To make the best possible decisions regarding your financing and de facto strategic direction, Startups have to place themselves in the best possible situation from day one.
Every Startup should end a series of successful prototyping with
The words we use can hurt others and cause tension and resentment. Words can even cause wars. Humans tend to create and use words that hurt or label. As you design your persuasive message, you must consider the emotional impact of each word and phrase.When you want to create emotion, choose words that will trigger feelings. If you want to downplay the event or situation, use an unemotional word. Notice the following words generally have the same definition but carry different emotional weight, for example, calling someone "thrifty" versus "cheap," "traditional" versus "old-fashioned," "extroverted" versus "loud," "careful" versus "cowardly," and "eccentric" versus "strange."There are many words that are emotionally loaded and represent different values to different people. These words can get people to pay attention and alert them to know what significance the message has for them. It is hard to find a neutral word. Y
To make the best possible decisions regarding your financing and de facto strategic direction, Startups have to place themselves in the best possible situation from day one.
Every Startup should end a series of successful prototyping with
Whether you realize it or not, every business has a brand. How you develop it is the difference between creating your point of distinction or blending in with the crowd; projecting a positive image or eliciting a negative one; growing your business or merely existing; successfully reaching your target audience or missing the mark altogether.Brand does matter. Those who build their brand and manage it successfully can profit mightily. Here are six principles for creating and building brand as well as real-world examples of why it matters.Strong brands trigger hot buttons in the consumer.We buy for emotional reasons and then rationalize those purchases. Know what triggers your target audience. For Volvo buyers, it’s safety. In fact, Volvo and safety have become synonymous. Volvo has taken this emotional connection and strategically built its brand around safety. The company’s Web site says, “Explore the be
Every Startup should end a series of successful prototyping with an analysis of which low-cost, high-impact business models, revenue models, pricing models, and sales strategies are suitable for their solution [problem-solving product or service] and its Users.
The next step is for Startups to assess the cost of implementing and executing particular business models. Startups may choose to self-finance these costs, receive funds from Angels, or use a pay-as-you-go strategy where you use a small base of sales to generate free cash flow which in turn funds additional sales efforts.
Finally, when moving into Alpha and Beta testing, it its critical to simultaneously test well-thought out business models, revenue models, pricing models, and sales strategies alongside your solution. If you decide to c
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